Discovery-Leveraged Investment in Gold
Nov
- vember 2
r 2018 18 AGM U Update te
Discovery-Leveraged Investment in Gold Nov ovember 2 r 2018 18 - - PowerPoint PPT Presentation
For personal use only Discovery-Leveraged Investment in Gold Nov ovember 2 r 2018 18 AGM U Update te DG DGO C Corporate Ove verview ew For personal use only Boa oard of of Di Director ors Mana nagem emen ent Shares 24.9 m
Nov
r 2018 18 AGM U Update te
Bruce Parncutt
Non-Executive Director 7 Majo jor S Shareh eholders
Eduard Eshuys
Executive Chairman
Dr Darryl Clark
Managing Director
30th Sept)
Board 84% 24%
Michael Ilett
Non-Executive Director
Ross Hutton
Non-Executive Director
Cindie Jupp
Chief Financial Officer
Dr Darryl Clark
Managing Director
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To provide an
investors to participate in a discovery-leveraged investment in gold. To apply expertise and disciplined allocation
returns for shareholders in the gold sector. To build on the successful history of the WA gold industry and to lead the cost effective discovery of gold resources underpinning substantial future growth.
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Brownfield gold resource discovery opportunities where finding costs are assessed to be comfortably below the brownfield average of $20 per resource ounce. Initial resource potential of greater than 3 million ounces as a base line required to support successful development.
Potential for long term resource growth, well beyond 3 million ounces. Potential for upside surprise via either a world class discovery (+10 million ounces) or substantial high grade mineralization.
Low finding cost Potential for scale Optionality to the upside
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0.00 500.00 1000.00 1500.00 2000.00 2500.00
1910 1930 1950 1970 1990 2010
Gold Prices and Historic Events
instability WW1 WW2 Great Depression Oil Crisis Middle- Eastern wars September 11 GFC
forecast
Nominal Value Inflation Adjusted Value
US$/Oz
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Millions of Ounces
5 10 15 20 25 30 35
1970 1979 1987 1996 2014 2017
S Africa USA Australia Canada China Australia
2nd largest producer
Jewelry
47%
Dental - Me Medic ical
0.6%
Elect ctronics cs
7.1%
Ce Central Ba Bank Reser erves es
8.7%
Equity T Traded Fund Funds
12%
Co Coin & Ba & Bars / / Investments
24%
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500 1,000 1,500 2,000 2,500 2 4 6 8 10 12
1851 1858 1865 1872 1879 1886 1893 1900 1907 1914 1921 1928 1935 1942 1949 1956 1963 1970 1977 1984 1991 1998 2005 2012
Western Australia Australia Adjusted gold price
tial k known wn go gold bearing s g structural t tren ends that h t have not b t been een adequatel ely e explored ed
ell e established ed infrastructure & e & low sover erei eign gn r risk
g pool o
explorati tion, d dev evel elopmen ent and m mining c g capabilities es.
Millions of Ounces
Production increased due to improved discovery technology
Adjusted Gold Price Australian Gold Production
Western Australia has:
Gold Price
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primarily through strategic equity investment Individual portfolio investments can realistically be anticipated to return 30% to 100% IRR’s based on successful ASX listed brownfield discovery and development
past five years. and also through tenement acquisitions and joint ventures
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DGO Gold defines brownfield exploration as that
to known economic gold mineralisation where the geological controls and settings are understood.
Company ASX Period
$m Res. Discovered Moz Resource Finding Cost $/oz IRR % Northern Star NST Over 3 years to Oct 2018 150.0 7.1 21 59 Dacian Gold DCN From IPO to Jul 2016 55.0 2.5 22 71 Kin Mining KIN From IPO to Jul 2016 26.0 1.0 26 83 Gold Roads GOR Over 3 years to Jun 2016 104.0 6.4 16 37 Total 335 17 20 62
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Source: GoldNerds Data Base Nov 2018 *Adj. Excludes Top & Bottom 10%
are v e valued ed a at an aver erage o e of
Producer ers v valued ed bet etween een
Producer ers w with less than 1 Moz in resources es are o e often en v valued ed a at ~ ~$55 / resource o e oz
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$0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0
Dacian Gold Share Price $
Resource M oz Measured M oz Indicated Moz Infererred M oz Share price $
Exploration 3.4 years Feasibility 1.6 years Development 1.25 years Production
71% IRR
Pre-IPO $10m Raised IPO $20m Raised @$0.50 $25m Raised @$0.69 $25m Raised @$2.50 $110m Raised @$2.0 $49m Raised @$2.70
31% IRR
Dacian G Gold b brownfi field r res esource d discovery success, 7 71% I IRR a and f finding costs ts o
f $22 p per er o
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compliant Exploration Target
term funding and inadequate geological analysis and planning
and sub-optimal for success
the explorer sector
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Selection criteria for ASX listed companies
~90 ASX listed explorers in WA goldfields Assess scale of geological structures and expected cost of discovery
De Grey Mining Ltd MC $48.3M NTM Gold Ltd MC $12.5M
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Brownf nfield o d opportuni unity with multiple gold deposits aggregating over 1.39 Mozs of gold1. DGO expects average fin inding c cos
$10 dollars per/oz.
DGO sees resource growth potential well a abo bove e 3M
resources.
DEG’s land position in the Mallina Shear Zone has over 40 gold g d geochem emical ano nomalies a es along 2 200km of strike with very little drilling below 100 metres.
DGO 7% (10% fully diluted); Kirkland Lake Gold 9.% (13% fully diluted).
DEG’s holding of the 200km long Mallina Shear Zone has the potential to become a world class gold province.
DEG’s recent exploration success validates our initial prospectivity analysis: 56m @ 3.0g/t gold from 14m depth
(DEG ASX announcement 15th Oct 2018).
1ASX:DEG Announcement 3rd October 201814
Source: compilation prepared by DGO Expert Research Advisor, Professor Neil Philips *Note all province maps are at the same scale
Kirkland Lake - Canada 70Moz - 300km Ashanti-Ghana 130Moz – 130km Mallina- WA 1.4Moz – 200km (and growing) Kalgoorlie-WA 80Moz – 100km
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DGO has 35km’s of prospective shear zones in addition to 7% of De Grey’s 200km’s
Pilbara Gold Province
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Recent exploration success validates our initial prospectivity analysis. Mallina
Toweranna
Withnell
137.03m2
Mt Berghaus
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Brownfie ield ld o
ity and a well positioned gold explorer in WA with 538,000 ounces of gold resources1 already delineated DGO expects average findin ing c costs o
$5-$10 d $10 dolla lars per/oz.
Clear potential for significant resource extensions and additions along its and related gold trends. 100% 100% held ld, 40 40 kilometre p e plus M Mertondale S e Shear ear Z Zone. e.
Excelle llent b brownfie ield ld d discovery potentia ial l with less than 20% of the 40 kilometres of Mertondale Shear Zone being adequately explored.
DGO will have a 13% interest in NTM after completing the subscription agreement.
The management and board
discovery of substantial resources.
Recent exploration success: 7m @ 4.7 g/t gold from 40 metres to end of hole 2 DGO’s investment will accelerate NTM’s strategically targeted drilling
1ASX:NTM Announcement 13th June 2018 2ASX:NTM Announcement 17th October 201818
6 operating gold processing plants are located with 50 to 75km’s
Source http://ntmgold.com.au/sites/ntmgold.com.au/files/i/mertondale-shear-zone.png
No effective drilling
250m depth
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DGO’s strategy is to identify target areas with world class gold discovery potential in Australia. The company holds large strategic land positions in prospective gold and copper terranes:
Pilbara Region, Western Australia
Total landholdings of 3,986 km2 prospective for both structurally controlled and Witwatersrand type sediment hosted gold deposits.
Stuart Shelf and Adelaide Fold Belt, South Australia
Over 759 km2of land holdings hosting targets with a high probability of stratiform copper-cobalt mineralization.
Yerrida Basin, Western Australia
Extensive land holdings of 1,869 km2, hosting multiple gold and copper soil.
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Professor Neil Phillips Former Head of Exploration and Mining at CSIRO Distinguished Professor Ross Large University of Tasmania Dr Stuart Bull Expert Sedimentologist
Barry Bourne
Industry Geophysics Expert
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5 10 15 20 25 30 35 40 10 15 20 25 30 35 40 45 50 55 60
DEG Share Price Range in cents Value of DGO’s Investment DEG/DGO Share in Cents
DEG Share Price Impact to DGO Value
2 4 6 8 10 12 14 16 10 20 30 40 50 60 70 80 90
NTM Share Price Range in cents Value of DGO’s Investment in NTM/DGO Share in Cents
NTM Share Price Impact to DGO Value
Note: Valuation of the options held by DGO in DEG and NTM was calculated using the Black-Scholes pricing model
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Note: Encounter Resources ASX:ENR; Duketon Mining Ltd ASX:DKM; August 2018.
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DGO ENR DKM Tenements km2 9,882 3,800 1,200 Market Cap $m 16.3 14.7 20.6 EV / km2 - $ 1,028 3,185 12,588
Eduard Eshuys
BSc, FAUSIMM, FAICD
Executive Chairman Bruce Parncutt AO
BSc, MBA
Non-Executive Director Dr Darryl Clark
BSc(Hons), PhD, FAUSIMM, MAICD
Managing Director
Ed is a geologist with five decades of exploration experience in Australia. In the late 1980s and early 1990s he led the teams that discovered Plutonic (+5M ounces), Bronzewing (+3M ounces) and Jundee (+7M ounces), Quarters at Mount Pleasant (+2M ounces) and Rosemont in the Duketon Belt (now +1M ounces), initiated the consolidation of the Mt Pleasant District and the Duketon Belt and led the development and
As the Managing Director and CEO of St Barbara Limited from 2004 to 2009 he led the acquisition
established resources of +3M ounces and new probable reserves of 1.6M ounces at the Sons of Gwalia Mine. St Barbara Limited grew substantially to become a mid-tier gold producer during that period. Darryl holds a PhD in Economic Geology from the Centre for Ore Deposit Excellence at the University of Tasmania. Darryl has been working as a geologist for over 23 years. He is a highly experienced geologist with a demonstrated track record of leading the exploration divisions of a number of mining houses: Global Geoscience Manager BHPB Exploration; General Manager Exploration Australasia – Vale, Vice President Exploration Cameco Corp. Canada and most recently CEO for Cameco Kazakhstan, Cameco’s investment in the JV Inkai uranium mine. Darryl is currently an independent Non- Executive Director of ASX listed Xanadu Mines.
Bruce’s career commenced as a resource analyst and spans over 40 years in financial analysis, merger and acquisition transactions, capital-raisings, and investment in companies across a broad spectrum from early stage to mature public companies. This includes seven years as Chief Executive of leading listed securities firm McIntosh Securities (1990 – 1996) and three years as Senior Vice President
successful acquisition of McIntosh Securities in 1996.
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This presentation has been prepared by DGO Gold Limited (DGO). The information contained in this presentation is for informational purposes only and does not constitute an offer to issue, or arrange to issue, securities or other financial products. The information contained in this presentation is not investment or financial product advice and is not intended to be used as the basis for making an investment decision. The presentation has been prepared without taking into account the investment
completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, none of DGO, its directors, employees or agents, nor any other person accepts any liability, including, without limitation, any liability arising out of fault of negligence, for any loss arising from the use of the information contained in this presentation. In particular, no representation or warranty, express or implied is given as to the accuracy, completeness or correctness, likelihood of achievement or reasonableness or any forecasts, prospects or returns contained in this presentation nor is any obligation assumed to update such information. Such forecasts, prospects or returns are by their nature subject to significant uncertainties and contingencies. No representation is made that, in relation to the tenements the subject of this presentation, DGO has now or will at any time in the future develop further resources or reserves within the meaning of the Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code). Before making an investment decision, you should consider, with or without the assistance of a financial adviser, whether an investment is appropriate in light of your particular investment needs, objectives and financial circumstances. By accepting this presentation, the recipient represents and warrants that it is a person to whom this presentation may be delivered or distributed without a violation of the laws of any relevant jurisdiction. This presentation is not to be disclosed to any other person or used for any other purpose and any other person who receives this presentation should not rely or act upon it. Information contained in this presentation is confidential information and the property of DGO. It is made available strictly for the purposes referred to above. The presentation and any further confidential information made available to any recipient must be held in complete confidence and documents containing such information may not be reproduced, used or disclosed without the prior written consent of DGO. This presentation must not be disclosed, copied, published, reproduced or distributed in whole or in part at any time without the prior written consent of DGO and by accepting the delivery or making to it of this presentation, the recipient agrees not to do so and to return any written copy of this presentation to DGO at the request of DGO. The Technical Study outcomes and production targets reflected in this presentation are preliminary in nature as conclusions are drawn partly from indicated mineral resources and partly from inferred mineral resources. The Technical Study is based on lower level technical and economic assessments and is insufficient to support estimation of ore reserves or to provide assurance of an economic development case at this stage, or to provide certainty that the conclusions of the Technical Study will be realised. There is a low level of geological confidence associated with inferred mineral resources and there is no certainty that further exploration work will result in the determination of indicated mineral resources or that the production target itself will be realised.
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Lev evel el 1 17 41 Exhi hibition Stree eet Melbo bour urne ne V VIC 3 3000 P +61 3 9133 6251 E admin@ n@dg dgogold. d.com.au
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